Only 40 per cent of UK consumers would still rather use their bank for international money transfer services than any other available platform, according to research from FXcompared Intelligence, the research division of FXcompared. This lack of a preference for bank-based transfers is seen across a range of currency transaction values.

Banks are coming under increasing pressure from a number of platforms and services which, by removing the middleman from currency transactions and charging little – if any – fees or commission, slash the cost of transfers for customers. Indeed, over 60 per cent of respondents said that the associated fees for money transfer transactions were important to them when choosing a provider. The same percentage of respondents also said that the rate of exchange they received was an important factor.

But while both transaction fees and exchange rates are seen as key, 35 per cent said that they would still use their bank for international money transfers no matter what. This was in comparison to other transfer options, including brokers, storefront, and online-only providers. Also telling was the emphasis that the credibility of the provider had amongst respondents with the highest proportion – over 30 per cent – saying that it was an important reason for choice.

Daniel Webber, Managing Director, FXcompared, said: “In recent months the currency transfer market has been punctuated by questions related to online and peer-to-peer foreign exchange platforms and their ability to eclipse existing retail currency services in the UK. This new data from FXcompared shows that since many consumers consider rates of exchange and transfer fees as important factors when transferring money, only a minority now trust in their banks for these services. A sophisticated, often younger, majority, now undertake their international money transfers with other non-bank providers.”

The FXcompared Intelligence 2015 UK Consumer Money Transfer Report was based on a survey that was conducted across a sample of 2,000 UK-based individuals and covered a range of transaction values from under £1,000 to over £1 million. The full report, and other FXcompared Intelligence research, can be viewed here.